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EUROPE
The End of German
Hegemony – Project
Syndicate
Germany’s dominant position, which has seemed absolute since the 2008
financial crisis, is gradually weakening – with far-reaching implications for
the European Union.
Divergent monetary
policies and the world economy – ECB
Keynote address by Vítor Constâncio, Vice-President of the ECB
Wise comments from the
ECB – Scott Sumner
UNITED STATES
10 Questions on the U.S.
Debt Ceiling – WSJ
Dudley Spooks Stocks: 'We
Don't Need "Actual Inflation" To Hike' – ZH
US Inflation will not be gone for long - CPI review – Nordea
Core inflation likely to remain relatively stable – Pictet
Consumer Prices Conundrum: Higher Inflation, Slower Growth? – WSJ
OTHER
FX: what could put the dollar back on track? – Nordea
The dollar has been
under pressure recently, in particular due to the perceived softening by the
Fed. With the rates market currently pricing the first full Fed rate hike by
July 2016, what could put the dollar back on track?
REGULARS
Morning MoneyBeat Asia – WSJ
October Rally Stopped
Cold as Stocks Slide
Morning MoneyBeat Europe – WSJ
Stocks Push Higher as
Fed Doubts Grow
Morning MoneyBeat US – WSJ
Wal-Mart’s Dim Outlook
Could Have Broader Impact
Danske Daily – DanskeBank
Euro rates update – Nordea
Eye-Opener – Nordea
Asia shrugs off Wall Street’s
decline * US inflation back to negative, 10Y yield back to 2% at 5-month low on
weak data * USD weaker as Fed concerns rise
Morning Markets – TF
The dollar was battered
from pillar to post overnight after poor data and a 10% plunge in Wal-Mart's
share price. More of the same could be on tap today if data continues to
disappoint.
The US and Europe are facing
economic headwinds such as low deflation, strong currency and wage pressure.
But that might be the right environment to invest in equities and there are
also data suggesting improvement.
Daily Press Summary – Open
Europe
Downing Street still
targeting December summit for EU deal * Commission urges more cash to fight
migration crisis as Germany tightens asylum laws * EU leaders to discuss
creating European border guard * Catalan leader appears in court to face civil
disobedience charges * Greek parliament set to approve reforms including
increase in retirement age * Austrian Central Bank Governor eyes further
measures to boost inflation * EU's anti-fraud office accuses own supervisory
committee of misusing funds
Brussels Playbook – Politico
Juncker slips, Selmayr
splits on Brexit
US Open – ZH
Futures Surge As ECB
Bankers Resort To Verbal Intervention, Suggest More QE Needed
Frontrunning – ZH
EURUSD approached 1.1500 after weak
US retail sales and the Fed’s Beige Book yesterday, but right on cue, the ECB’s
Nowotny was out today with a fresh blast of dovish ECB rhetoric that pushed the
euro back lower. Elsewhere, USDJPY is punching on key structural levels.
Yesterday's soft US
retail sales print has combined with Wal-Mart's profit warning to hit the USD
where it hurts, and today's CPI release is consequently in the spotlight. If
this one comes in weak or negative, then markets will broadly come to expect a
continually dovish Federal Reserve, boosting emerging markets and postponing
recovery.
FINNISH
Epävarmuus
kalvaa kehittyvien talouksien valuuttoja * USA:n vähittäismyynti tuotti
pettymyksen * Korot laskivat eilen reilusti * USA:n inflaatio on
todennäköisesti hidastunut syyskuussa